House Bill No. [insert number] proposes amendments to Louisiana's property insurance laws, specifically regarding mandatory binding arbitration. The bill amends R.S. 22:868 to clarify that, except as provided in the new section R.S. 22:868.1, insurance contracts cannot require arbitration unless certain conditions are met. These conditions include the requirement that arbitration provisions must be included in a separate endorsement attached to the policy, the premium must reflect a discount for agreeing to arbitration, and the policyholder must sign a form acknowledging the rights they forfeit by choosing arbitration. Additionally, the insurer must offer a policy that does not require arbitration.

The new section R.S. 22:868.1 outlines specific requirements for arbitration, including that it must occur within the state and that the arbitrator must be a licensed attorney in Louisiana. The arbitrator is empowered to issue judgments that may include penalties and attorney fees. The bill also stipulates that arbitration will be governed by the Louisiana Binding Arbitration Law and allows the commissioner of insurance to create rules for implementation. Overall, the bill aims to regulate the use of mandatory binding arbitration in property insurance policies while ensuring that policyholders are informed of their rights.

Statutes affected:
HB379 Original: 22:868(A)